Proposition 60 & 90
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Guidelines for the transfer of the Property Tax Base
from one principal place of residence to another
principal place of residence in-county only.
One of the property owners must be at least 55 years old
on the day of transfer of the principal place of residence.
The subsequent principal place of residence must be
transferred (i.e. close of escrow on purchased home) within
two years of the transfer date of the first principal place of
residence.
A five percent inflation allowance is allowed if the
subsequent purchase is less than one year of sale date of the
original place of residence.
A ten percent inflation allowance is allowed if subsequent
purchase is at least one year and one day but less than two
years of the original property.
ALL PROP 60 TRANSACTIONS MUST
BE COMPLETED WITHIN TWO YEARS!
Proposition 90 will allow the inter-county transfer of the
property tax base if the county supervisors have approved
it. Counties subject to change without prior notice. For
further verification, please contact your county’s
assessor’s office.
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Guidelines for proposition 60 & 90 apply if the
homeowner wishes to purchase a new principal place of
residence prior to the sales completion of his original
principal of residence.
There is no inflation allowance if a new principal place of
residence is purchased first!
EXAMPLE:
A home is purchased under Proposition 60 & 90 for the
amount of $200,000 before the sale is completed on the
original home. (DEED RECORDED).
The homeowner must be certain the original home where
the property taxes are being transferred from will sell for
at least the purchased price of his new home, $200,000 in
this example.
If the original residence does not sell for at least this
$200,000, the homeowner would not be able to transfer his
lower property tax base to the new home.
It is always a safer situation to have the homeowner sell his
principal residence first, as he then knows what his options
will be.
COUNTY UPDATE: PROPOSITION 60 & 90
Proposition 60, under certain requirements, allows a
homeowner 55 years of age or older at the time of the sale
of his principal residence, to transfer his tax base rate
within the same County. Proposition 90, under certain
County requirements, allows a home owner 55 years of age
or older at the time of the sale of his principal residence, to
transfer his tax base rate from one County to another.
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June 06 2008 01:17 pm | Uncategorized